DHA eNews - China May Cut Tariffs On U.S. Wood Products
In our last newsletter, we highlighted the increasingly close relationship between the Canadian government and the EU. Now, the Canadian government is pushing back on the high unnecessary costs of implementing the EU Deforestation Regulation. Canada - and the U.S., for that matter - are both extremely low-risk countries for deforestation. Let's hope the Canadian government can leverage its new relationship to make EUDR more cost-effective and better tailored to deforestation risk. If the Canadian government is unsuccessful, it may want to rethink partnering with the EU, which will certainly come with a whole host of regulations.
Last week, Chinese President Xi Jinping arrived in the U.S. to a great amount of pomp and circumstance covered by the press. Getting less attention are trade discussions, which appear to be moving forward. The list of Chinese imports from the U.S. that will be considered and may qualify for better trade treatment in the future includes logs and wood products.
If you have questions or comments, contact me. I look forward to hearing from you.
Keith A. Christman, President
As the EU and Canada explore ways to deepen their relationship, the Canadian government seeks to revisit how the EU Deforestation Regulation (EUDR) applies to Canadian businesses. Canada's ambassador is arguing for a "carveout that said you don't have to put in place all of these burdensome requirements" for low-risk countries. Canada's forestry industry warned that producers could incur tens of millions of dollars in unnecessary costs due to the requirement for plot-by-plot tracing.
After Chinese President Xi's recent visit and the establishment of the U.S.-China Board of Trade to manage trade of non-sensitive products, the Trump administration announced that a wide range of U.S. wood products may qualify for better trade treatment. These products include hardwood logs, lumber, and more.
On September 14, the U.S. Fish and Wildlife Service and National Marine Fisheries Service rescinded the regulatory definition of "harm," which is a significant change in how the Endangered Species Act will be implemented. Under the new guidance, a prohibited "take" now requires action intentionally directed at a particular living animal - not a population, future occupants, or unoccupied habitat. This means that indirect or incidental effects from habitat modification are not likely to be considered a "take."
Congress is considering the Housing Tariff Exclusion Act, which would automatically exempt many home building materials from President Trump's current and future tariffs. Importers could also request exemptions for other materials. The bill may affect Section 232 tariffs but excludes antidumping and countervailing duties.
From January through July, the total volume of U.S. imports of hardwood plywood fell by 31% vs. last year and value fell by 20%. In the month of July, however, the value of imports rose by 2% to $157.3 million, the highest level since January, as volume fell by 9%. The volume of imports from Indonesia and Vietnam dropped by more than 50% so far this year.
U.S. imports of tropical hardwood veneer were essentially flat from June to July, increasing by less than 1%. Imports in July 2026 reached almost $3.55 million, 14% higher than in July 2025.
Colombian cartels smuggled about $5.7 million worth of cocaine into Ireland, cleverly concealed within sheets of plywood. Before the drugs could be extracted from the wood, law enforcement shut down the operation. The international crackdown on organized crime involved authorities from 34 countries.
Lower housing and construction activity has reduced demand for the hardwood products used in flooring, cabinetry, and trim, affecting white oak in particular. Prices for green 4/4 FAS white oak have dropped by nearly 24% over the past year and by about 30% vs. two years ago.
Skyrocketing diesel prices are driving up costs for logging and log-hauling businesses that depend on heavy-duty trucks and fuel-intensive operations. As fuel costs climb, the expense of moving raw forest products grows with every mile, squeezing contractors who already operate on thin margins. These increases ripple through the entire supply chain, affecting delivered wood costs and operational predictability.
Wood look-alike luxury planks, rigid core flooring, and laminate may dominate headlines, but strong sales in the hardwood flooring sector reflect strong consumer demand for real wood. In this feature, retailers cite some of their top-selling hardwood lines this year, including many from DHA members.
More than 2.5 million acres burned in Oregon this summer, more than at any time in recorded history. About 92% of the area burned is on public lands. It's a wake-up call: the system is broken and fixing it requires new thinking. Almost all catastrophic wildfires in the past 10 years began on public lands.
Dryness is a critical driver of wildfires. To help prevent and predict fires, scientists at the U.S. National Science Foundation National Center for Atmospheric Research are producing real-time maps of the moisture content of vegetation across the country. Click on the link below to see the maps on their website.
Which bear won Fat Bear Week at Katmai National Park?